CSE sustains recovery momentum, ending November on positive note

By Hiran H. Senewiratne

The CSE yesterday sustained its new-found momentum, rising by over 3 per cent, thereby enabling it to finish November on a positive note after the dip in October. This time the market bounced back strongly, reflecting positive sentiments for the fifth consecutive day, stock market analysts said.

Positive investor sentiments were established on the basis of positive comments from the Governor of the Central Bank over market rates, eventually seeing an ease despite fears over successful domestic debt restructuring. Analysts further stated that Treasury related stocks have also been activated due to downward movements in yield.

Amid those developments both indices moved upwards. The All- Share Price Index went up by 52.56 points and S and P SL20 rose by 13.34 points. Turnover stood at Rs 3.1 billion with three crossings. Those crossings were reported in Expolanka Hodings, which crossed 4.1 million shares to the tune of Rs 817 milllion, its shares traded at Rs198, Asiya Syaka Commodities 10 million shares crossed for Rs 43 million, its shares traded at Rs 4.30 and Sierra Cables 3 million shares crossed to the tune of Rs 33 million and its shares traded at Rs 11.

In the retail market top seven companies that mainly contributed to the turnover were, Lanka IOC Rs 470 million (2.3 million shares traded), Expolanka Holdings Rs 299 million (1.5 million shares traded), Browns Investments Rs 229 million (31.2 million shares traded), LOLC Finance Rs 175 million (21.4 million shares traded), Sunshine Holdings Rs 72.1 million (1.9 million shares traded), First Capital Holdings Rs 63.6 million (2.4 million shares traded) and LOLC Holdings Rs 58.8 million (138,000 shares traded). During the day 176 million share volumes changed hands in 23000 transactions.

It is said high net worth and institutional investor participation was noted in Overseas Realty, Lanka IOC and Kelani Tyres. Mixed interest was observed in Expolanka Holdings, First Capital Holdings and Capital Alliance, while retail interest was noted in Browns Investments, SMB Leasing (voting and nonvoting) and LOLC Finance.

The Food, Beverage and Tobacco sector was the top contributor to the market turnover (due to Browns Investments) while the sector index gained 3.27 per cent. The share price of Browns Investments increased by Rs. 1 (15.38 per cent) to close at Rs. 7.50.

The Diversified Financials sector was the second highest contributor to the market turnover (due to LOLC Finance) while the sector index increased by 6.66 per cent. The share price of LOLC Finance appreciated by Rs. 1.30 (20 per cent) to close at Rs. 7.80.

Even in the international arena the market conditions were quite positive. Chair of the Federal Reserve of the United States Jerome Powell said that the speed of the interest rate hike would reduce and the European Union seems to be moving out of recession worries. This has also created some positive sentiment for local markets as well, analysts said.Yesterday the Central Bank- announced US dollar buying rate was Rs 361.25 and the selling rate Rs 371.72.